Apple’s third quarter results saw revenue surge by 36% to $81.4bn, due to strong consumer demand for premium iPhones.

Apple today announced financial results for its fiscal 2021 third quarter ended June 26, 2021, in which profits nearly doubled from $11.3bn to $21.7bn, marking another stellar performance for the tech giant.

Premium iPhones were the key driver of Apple’s revenue growth

According to the report, iPhone net sales reached $39.5bn, an almost 50% increase compared to the third quarter ended June 27, 2020. Apple CEO Tim Cook attributed the surge to strong sales of the premium 12 Pro and 12 Pro Max, which helped beef up overall profit margins.

In April 2020, Apple became the first company in the world to reach a $2tn market cap. Since its inception the company has been selling its high-end, ‘luxury’ personal computers, and since the iPod was released in 2001 it has pushed the price-bracket for numerous other electronic devices as well.

Apple’s ‘luxury tech’ (LTech) business model has been as important to its success as its innovation with groundbreaking products. This model is what continues to drive such impressive revenue growth for Apple, as seen through the popularity of its most premium products.

The iPhone segment wasn’t the only strong performer. Apple’s services business, which includes Apple TV subscriptions and the App Store, saw revenues jump to $17.5bn from 13.1bn in third quarter ended June 27, 2020. Growth was bolstered by the pandemic, which has seen consumers turn to in-door leisure activities. Subscriber numbers on Apple’s various platforms have increased by 40 million to 700 million over the latest quarter.

China has become an important market for Apple

Chief executive Tim Cook told Reuters news agency that its strongest growth in the quarter came from China, where sales increased by 58% to $14.8bn, supported by a broad demand for products from the iPhone to the Mac computer and Apple Watch.

In Q4 2020, the iPhone 12 was a huge success in China, responsible for 57% of overall growth in revenue YoY. Most of China’s iPhone 12 sales came from upgraders who were holding on to older iPhone 7s and 8s and the market is set to become a key 5G market for Apple. Apple’s growing influence in the Asia-Pacific region will only help its bottom line, where gains in one region could offset losses in another.

Other tech giants have also performed well

Apple isn’t alone in its strong performance. Alphabet posted a better than expected 62% increase in revenues to $61.9bn for the April-June quarter, while Microsoft’s annual revenues for the year to the end of June were up 18% to $168bn.

Revenue growth at Alphabet and Microsoft has been driven by pandemic trends such as rising online activity and remote working and studying.